INTRODUCTION

Bombay Stock Exchange is the oldest stock exchange in Asia What is now
popularly known as the BSE was established as "The Native Share & Stock Brokers'
Association" in 1875 over the past 135 years, BSE has facilitated the growth of the
Indian corporate sector by providing it with an efficient capital raising platform.
Today, BSE is the world's number 1 exchange in the world in terms of the number of
listed companies (over 4900). It is the world's 5th most active in terms of number of
transactions handled through its electronic trading system. And it is in the top ten of
global exchanges in terms of the market capitalization of its listed companies (as of
December 31, 2009). The companies listed on BSE command a total market
capitalization of USD Trillion 1.28 as of Feb, 2010. BSE is the first exchange in
India and the second in the world to obtain an ISO 9001:2000 certifications. It is
also the first Exchange in the country and second in the world to receive Information
Security Management System Standard BS 7799-2-2002 certification for its BSE On-
Line trading System (BOLT). Presently, BSE are ISO 27001:2005 certified, which is
a ISO version of BS 7799 for Information Security. The BSE Index, SENSEX, is
India's first and most popular Stock Market benchmark index. Exchange traded
funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and options
on the index are also traded at BSE

Vision
"Emerge as the premier Indian stock exchange by establishing global
benchmarks"
Mission
“To educate and create awareness among investor
listing procedure

Types of equity listing

Next
 
 
The process of equity listing on the Exchange consists of several steps. Its time requirement
and complexity also depend on the “type” of listing the company intends to realise:
 
1.“Simple” listing on the Exchange, without a capital increase (issue of new shares) or public
offering of existing shares (exit). In this case, when the company appears on the market, it
creates a future possibility for flexible funding. At the
same time, it “learns" how to comply with requirements
associated with maintaining its shares on the Exchange,
while allowing the company to continuously test
company performance in the public markets. Performing
well during this presence on the Exchange improves a
company’s conditions for raising future funds. 
A firm may benefit from this option when it does not
need additional capital at the time of the listing, or when
the firm’s owners intend to sell their stakes or a portion thereof only in the medium or long
term. 

On the other hand, going public on an Exchange undoubtedly creates a challenge that the
company has to cope with even in the period preceding raising the actual funds or prior to
exit. 

2.“Traditional public offering”: a listing where the admission to the Exchange is coupled with
the offer of a share package to the public, i.e. either the issue of new shares or sale by owners
or a combination of the two. 
 Listing process
 

The listing process comprises the following steps:

1.       Decision about listing on the Exchange 

The company compares the benefits of a presence on the Exchange (the “profit” of the
listing) with the challenges connected with it (primarily the disclosure obligations of its
presence on the Exchange, but also one-off and ongoing expenses). If the company considers
that the benefits outweigh the costs of listing, it may then decide to apply for a listing on the
Exchange.
2.       Selection of the contributors 
The first and most important task during the preparatory phase is the selection of the
contributing players. 
Investment firms have a dual role. On the one hand, they carry out
advisory services, the preparation of the issue process, and the
transaction itself, while on the other hand they offer/sell the securities
to the public. In a public offering, they also provide an underwriting
guarantee on behalf of the issuer. Fees are generally charges in
accordance with these main services. Choosing the right investment
firm is of paramount importance since this is the player who will
assist the issuer during the entire listing process and who organises
this multi-player and complex negotiation. It is reasonable to select
the advising bank (or banks) based on a tender, and selecting the other
players together with the advising bank is recommended. The issuer
has to make preparations even prior to the selection of the advisor and
needs to have knowledge of the qualification criteria and the requirements expected during
the selection and listing process.   
Auditors’ responsibility is far larger and far more complex in the case of a public company
and transactions resulting in an increase in the number of shareholders. In addition to the
traditional audit services, the auditor prepares a more detailed financial report (the so-called
long form report) in the preparation of a listing, and its tasks often include an assessment (but
not a certification) of the management's earnings forecasts. 
Legal advisors deal with the examination of the legal status, significant contracts and legal
relationships of the issuer, as well as with the documentation of shareholder rights (statutes,
deed of foundation, shareholders’ agreements etc.). Legal advisors’ main task is to prepare a
final report. The role of lawyers is very important in the preparation of a public offering,
subscription and underwriting contracts linked to the sale of shares. Given that at this stage of
the process the interests of the issuer and of the lead manager may differ, both parties often
have their own legal counsel. 
Marketing and PR advisors provide assistance with the distribution of shares during the
public offering and with marketing the securities to potential buyers. These advisors
participate in organising road shows preceding the sale of the shares and in providing logistic
services. 
If the company intends to make a simple listing on the Exchange, it is not necessary to
involve all of the players listed above – the respective regulation does not require the
contribution of an advisor in this case. Still, if a package of new or existing shares is to be
sold to the public, contribution of an investment firm has to be involved.
3.       Preparations for listing on the Exchange 
The company shall prepare not only for the listing, but for the maintenance associated with
listing on the Exchange. It is necessary that an appropriate level of investor relations and a
harmonisation of the internal corporate processes among the different business units are
ensured. It is particularly important in the case of a public offering, but also useful in a simple
listing, to devise an appropriate marketing campaign at this stage.
4.    Preparation of a prospectus
The most important document of a listing is the so-called prospectus.
The prospectus shall contain all relevant information on the economic,
market, financial and legal situation of the company (and their likely
developments in the future), giving investors the widest possible range
of information to ensure proper decision-making. The prospectus shall
explicitly contain a statement that the shares are to be listed on an
Exchange and shall indicate as a prime risk factor, if no
investment firms participated in its compilation. The prospectus
prepared for a listing on the BSE shall be submitted for approval to the
Hungarian Financial Supervisory Authority (HFSA), which shall make
a decision within 20 working days. Issuing the Prospectus can only be
done following the HFSA’s approval. As a consequence of Hungary ’s EU membership and
on the basis of a “single passport”, the BSE also accepts prospectuses approved by the
supervisory authority of any other EU member state. The provisions regarding the contents of
the prospectus are determined by the respective EU regulation.
5.       Compilation of the listing documentation
 This documentation basically consists of an application, different statements and additional
documents (to assist in this, the Exchange has compiled an application form).
6.       Official submission of the listing documentation to the Exchange (application for
listing) 
In order to ensure smoother administration, it is recommended that an unofficial draft version
of the application be submitted to the Exchange for a preliminary assessment prior to the
official submission of listing documentation. This shall be followed by the official
submission of the papers already agreed upon.
7.       Public notice of new listing applications 
Subsequent to the receipt of the application, the Exchange issues a public notice informing
the market of the receipt of the application.
8.       Review of the application 
The Exchange has five working days to review the application from a formal point of view
and must make a decision within 30  calendar days of its receipt. If necessary, the Exchange
may request the issuer to submit any missing documents, and the issuer shall appropriately
supplement the documentation within ten working days – in such cases, the deadline for the
assessment by the Exchange shall be extended by the period needed to submit the missing
documents.
9.       Publications on the Exchange website regarding the listing 
The documents relevant to investors shall be published at least two Exchange days before the
listing.
10.    If the documentation is complete and appropriate, a decision on listing shall be made
(otherwise, the application shall be rejected). 
11.    First trading day Trading in the shares officially commences on the Exchange.
 
 

Guidelines for Listing

Listing means admission of securities to dealings on a recognised stock exchange. The securities may be of any public limited c
Central or State Government, quasi governmental and other financial institutions/corporations, municipalities, etc.

The objectives of listing are mainly to :

 provide liquidity to securities;

 mobilize savings for economic development;
 protect interest of investors by ensuring full disclosures.

The Bombay Stock Exchange (BSE) has a dedicated Listing Department to grant approval for listing of securities of com
accordance with the provisions of the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rule
Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of

BSE has set various guidelines and forms that need to be adhered to and submitted by the companies. These guidelines will help co
to expedite the fulfillment of the various formalities and disclosure requirements that are required at various stages of

 Public Issues
o Initial Public Offering
o Further Public Offering
 Preferential Issues
 Indian Depository Receipts
 Amalgamation
 Qualified Institutions Placements